Cramer's Mad Money Recap: Snowflake, Salesforce, Sonos

Jim Cramer says Wall Street's first reactions are almost always wrong. Investors who rush to judgement lose out.
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When it comes to earnings, Wall Street's first reactions are almost always wrong, Jim Cramer cautioned his Mad Money viewers Thursday. That's because it takes time to read and evaluate an earnings report, and if you rush to judgement, you risk making mistakes.

Case in point, Snowflake  (SNOW) - Get Report, which opened down 4% Thursday, only to close up 4% as analysts took a second look and realized just how strong the company's growth is.

Another company often underestimated is Salesforce.com  (CRM) - Get Report, which is why Cramer spoke Thursday night to chairman and CEO Marc Benioff to learn more.

Benioff said Salesforce just completed their best first quarter ever, with sales, earnings and cash flow all ending better than expected. Customers like Sonos  (SONO) - Get Report used Salesforce to drive their direct-to-consumer sales which rose by 84%.

Salesforce is also continuing its march to do well by doing good, focusing on not only profits but also social, cultural and environmental efforts. The company is actively engaged in fighting the pandemic with contact-tracing applications, a vaccine cloud and tools to help companies get their employees back to the office.

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Executive Decision: Gap

For his second "Executive Decision" segment, Cramer spoke with Sonia Syngal, CEO of Gap Inc.  (GPS) - Get Report, the retailer that just posted a 54-cents-a-share earnings beat.

Syngal said all four of Gap's brands are alive and well and all of them are back in growth mode. Old Navy's growth is accelerating as the brand enters new categories, like intimates, where it is already among the top 20 brands. Meanwhile, the new team at Banana Republic is reinventing that brand with an accessible luxury theme that customers love.

As for the company's namesake, Syngal noted that The Gap is one of the most iconic brands in the world and they're going big with beautiful, modern designs that offer a great fit and great value. Like Old Navy, Gap is also entering new categories with their recent partnership with Walmart  (WMT) - Get Report, which will write a new chapter for Gap Home.

Syngal closed by saying that while their stores matter, their digital offerings also are important. She promised more to come as they create better customer experiences in both channels.

Executive Decision: Williams-Sonoma

In his next "Executive Decision" segment, Cramer continued his retail theme by speaking with Laura Alber, CEO of Williams-Sonoma  (WSM) - Get Report, the high-end retailer that just delivered a monster $1.09-a-share earnings beat.

Alber said that Williams-Sonoma isn't just growing because the economy is reopening, it's growing because many of the initiatives they started during the pandemic are ahead of plan. Brands like West Elm still don't have enough brand awareness, Alber said, but once everyone has discovered the brand, sales could double.

Alber discounted the notion that once the economy reopens, sales will begin to decline. She said customers will still need plenty of items and gifts for back to school, back to college, weddings, holidays and more. When you see people in person, you bring them great gifts, she said.

Williams-Sonoma is also gaining ground in commercial spaces. Alber noted that not many retailers can give you the whole package, but they can both design and customize commercial spaces and give you everything you need.

Executive Decision: HP

In yet another "Executive Decision" segment, Cramer also checked in Enrique Lores, president and CEO of HP Inc.  (HPQ) - Get Report, the computer and printer maker that's preparing for the world to return to the office.

Lores said HP is expecting a hybrid world once the world's economies reopen. That means strong demand for HP's PCs, laptops and printers both in the home and the office. They're already seeing demand in printers, he said, with consumer printing up 70% in the quarter and commercial printing rising 40%.

When asked about 3D printing, Lores explained that HP is expanding their presence in the space. They are moving from just providing hardware and consumables to providing end-to-end solutions, which is what their customers are demanding.

As for HP's stock price, Lores said they continue to see their shares as undervalued given the strength they're seeing, which is why they will continue to buy back shares at every opportunity.

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Executive Decision: Mondelez International

For his final "Executive Decision" segment, Cramer checked in Dirk Van De Put, chairman and CEO of Mondelez International  (MDLZ) - Get Report, which today announced the acquisition of the European Chipita brand for $2 billion.

Van De Put first talked about the Mondelez approach for environmental and social governance, or ESG. He said they take a differentiated approach, focusing only on the areas where they can have a big, measurable impact. In other areas, they are open to collaboration with partners and governments to get the job done. But in both cases, it's important to have an integrated approach, where profits and responsibility go hand in hand.

As for the Chipita acquisition, Van De Put said the deal gives Mondelez access to a $65 billion market in cakes and pastries and is the perfect complement for their other brands throughout Europe.

When asked about the snacking trend, Van De Put said he thinks snacking is here to stay. People prefer snacking and eating smaller meals, he said, and as mobility increases, snacking will get back on the road.

Lightning Round

Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Thursday evening:

Clean Energy Fuels  (CLNE) - Get Report: "This one has run out of gas. We're not moving to natural gas."

Stem  (STEM) : "Stem is good. I'm not backing away from this one."

LKQ Corp  (LKQ) - Get Report: "I've liked LKQ for a long time."

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At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.